Product SynopsisPublished by Canadean, this Quarterly Beverage Tracker report provides a detailed analysis of the latest developments in the Russia beverage market

Introduction and LandscapeWhy was the report written?In the current climate of economic uncertainty and market volatility companies need to know about more than just data. This report provides a complete overview of all commercial beverage consumption trends, latest market developments and an economic mood indicator

What is the current market landscape and what is changing?Rosstat reported that in Q4-13 GDP growth in Russia stagnated and the previous forecast for annual economic growth for 2013 overall was slightly lower than previously expected at 1.3% compared to 2012. Low single-digit economic growth is quite normal for most developed countries but in Russia, which in recent years has become accustomed to medium single-digit GDP growth rates, it is perceived as stagnation, unacceptable for rapidly developing countries.

What are the key drivers behind recent market changes?Q4-13 was warmer than average for the time of year. Central Russia saw temperatures 1.5, 5.1 and 4.2 °C above average for October, November and December respectively.

What makes this report unique and essential to read?Designed for clients who want to understand the latest trends in the Russia beverage industry and want more detail and analysis on this data. Canadean’s Russia Quarterly Beverage Tracker report is ideal for benchmarking total market vs retail audit data and is an essential tool for keeping up-to-date with the latest industry and market developments

Key Features and BenefitsReaders are provided with a summary snap shot table showing category growth in Q42013vs Q42012, together with provisional 2013volumes and latest2014 forecasts

An economic mood indicator, completed by Canadean’s local consultant, examines (on a scale of one to five) whether confidence levels in the industry are better or worse than the previous quarter, whether net prices are rising or falling and how Private Label products have performed versus the rest of the market. Selected retail pricing data is given for the most recent quarter and the previous four quarters, enabling analysis of price movements.

Key highlights of the last quarter’s commercial beverage performance are identified and the key market drivers examined

Volumes for Q42013 vs Q32012, Provisional2013 volumes, moving annual totals (MAT) and latest 2014Forecasts are provided for each individual beverage category, together with supporting text on quarterly performance and forecast assumptions. More granular data is provided for the Carbonates category, with data split by regular vs low calorie, and by key flavors. Significant activity in the soft drinks industry is covered including recent new product introductions (detailing flavor, pack type, pack size, retail price and selected pack shots) and the latest industry news.

This quarters special focus is on Functional and Flavored Waters

Key Market IssuesMost experts blame the Federal authorities for their inability to create favorable conditions for attracting investment, which might have stimulated the economy to grow at 3-5 %. In the media 2013 is referred to as the “year of missed opportunities”.

Consumer purchasing power dropped as consumers' real disposable income declined by 5% in Q4-13 vs Q4-12. Consumers reduced spending on long lasting, durable goods and saved more. The decline in spending led to annual growth in retail turnover declining to 4% vs. 2012.

Inflation remained in state control and by the end of the year was 6.5% mainly due to rising food prices, particularly eggs, liquid dairy and vegetables. Food prices were also pushed up by the gradual devaluation of the Russian Rouble, compared to foreign currencies which increased the cost of imported products.

The worst PL performance was seen in juice and nectars where most supermarkets saw flat PL volumes. Consumers were dissatisfied with the quality and offers available. Increased competition in the segment led to very low prices and supermarkets reduced their offer as a result of this poor profitability.

Key HighlightsCarbonates grew in Q4, aided by massive advertising campaigns during the quarter.

In Q4-13, cider skyrocketed, increasing more than eight fold compared to Q4-12. The massive increase was due to a widely expanded offer of international brands, imported from a range of countries including Belarus.